Response to money laundering scandal: evidence-informed or perception-driven?

Abstract

PurposeThe purpose of this paper is to utilise underused information in anti-money laundering rating data to assist policymaking and research.Design/methodology/approachThis paper explores what evidence “hidden in plain sight” in official anti-money laundering rating data reveals about claims justifying the expansion of money laundering controls in response to European bank scandals.FindingsA perceived lack of international coordination influencing the policy response to a series of alleged anti-money laundering breaches does not accord with the anti-money laundering industry’s own evidence base.Practical implicationsResponding to new crises with superficial solutions without addressing fundamental questions with a multi-disciplinary perspective risks repeating and extending a decade-long cycle of ineffectiveness in efforts to mitigate the social and economic harms from profit-motivated crime.Originality/valueThis paper draws fresh conclusions from the anti-money laundering industry’s “main” data set, underused in policymaking and research.